JobKeeper helped in keeping the Australian economy afloat at the time when many Australian businesses were bleak due to Covid19.
JobKeeper initially gave businesses $1,500 per fortnight per employee to help pay the wages. At one stage, almost a third of Australian workers were on JobKeeper.
With ATO ending the JobKeeper from 28th March 2021, where will Australia be?
Here is a brief update on the impact of JobKeeper sunset.
As a direct impact, 10k to 15k small business are projected to close due to loss of JobKeeper funding. This might translate to over 200k jobs lost over the coming months, affecting the economy significantly.
Primary producers can breathe a sigh of relief as its highly unlikely that they are affected negatively by this change.
With the discontinuation of direct support to businesses, the federal government has introduced indirect support schemes and the state institutions are pitching in their support for businesses.
The government has introduced “Job-Maker Hiring Credit Scheme” to encourage businesses to hire new employees and the new “Ticket to recovery scheme” encourages travel and tourism by subsidising 800,000 domestic air tickets.
NSW has already announced small business rebate worth $1500 to from next month which can be used to pay off government fees such as licences, council rates and vehicle registration fees.
The ATO has stepped up with its initiatives to reduce impact on economy and has requested businesses to support their employees through these tough times and avoid lay-offs due to JobKeeper sunset.
Many Australian businesses are still volatile in the aftermath of lockdown and it is recommended by ATO & Economists to reach out to Accountants for any future planning.
Consulting accountants is going to provide businesses with the necessary know-how of the current state of the business and help them take the right decision for the future.
As a direct impact of the loss of government funding, businesses are expected to get help from funding institutions and the government has been quick to come up with indirect support schemes.
Businesses are keen to know where they stand and with the government introducing new schemes.
Carisma Solutions is committed to enabling success of Australian Accounting and Financial advisory firms by delivering high quality output in
- Calculating Job-Maker eligibility
- Loan lending process
- Preparation of Cashflow statement
- For handling merger & closure of business
- Tax planning
Accountants could expect more jobs in the above areas and in addition, we can support Accounting and Financial advisory firms in
- WIP Job Management
- Completing deadline jobs effectively
- Cashflow & Budgeting
- Financial Planning support services
Talk to our experts:
For any queries on how Carisma could help your business, write to biz@carisma-solutions.com.au and one of our experts will get in touch with you.
